12.4.2013 Gasum | Tommy Mattila 1

LNG AS A FUEL

TOMMY MATTILA

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Why LNG ?

LNG is a logistical solution ! Natural gas and biogas through the grid or as LNG/LBG with trucks or barges

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What is LNG ?

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• Natural gas in liquid form. Natural gas imported to Finland is almost pure methane (CH4).

Cryogenic liquid – 162o C

Density about 0,42 kg/ltr

Heat value 13,7 kWh/kg

1m liquid = 600m3 gas

• In liquid form will not ignite, only in gas phase

• Natural gas is odorless, tasteless and non-toxic

• Ignition temperature abt. 650°C (diesel 240°C )

• Ignites in a 5-15% air concentration

• Natural gas in gas phase is about half the density of air 0,56

Possible leakages vaporizes fast up in the air

New limitations for emissions

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Why ? LNG is the cleanest alternative

• LNG full fills all coming emission regulations as such with out any extra systems.

• LNG is sulpha free. IMO and EU directive limits the sulpha to 0,1% from 1.1.2015

• NOx reduction 85-90%. From 2016 reduction limit for new buildings 80% from 2016 (TIER III)

• CO2: EEDI index from 1.1.2013. EU and IMO is planning for more measures to reduce CO2.

• Particles: reduction of PM emissions.

• No oil spill risk

• Bio-LNG LBG possibilities

Biogas and natural gas both consists of methane.

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SOx NOx Particles CO2

HFO 1S LNG

Emissions LNG vs Heavy Fuel Oil

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Why ? LNG is competitive

The price development of LNG is foreseen to be more stable than that of oil. Long term competitiveness.

Growing ”large scale LNG” in Europe

More gas reserves than oil, shale gas

The LNG supply chain is more expensive than that of oil. Especially in the start up phase when the volumes are small.

Building the infrastructure is key

is LNG available ?

what is the price of LNG ?

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Marine Gasoil LNG Heavy Fuel Oil +

Scrubber +CAT

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SEA routes in the Baltics RoRo & ROPAX Containers

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Present LNG activity in Finland

Gasum’s small scale LNG production in Porvoo since 1996, 20.000 t /a

Semitrailers for distribution

Industrial clients and backup for biogasplants and gas grid maintenance

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Gasum is planning to start LNG-import in mid- and large-scale

• Siirtoputkiston pituus 1 190 km • Jakeluputkistoa 1 840 km (Gasum 512 km)

Pansio (Turku) • Mid-scale LNG import terminal Inkoo • Large-scale import terminal,

connection to gas network • OR mid-scale LNG import terminal

Porvoo • Large-scale import terminal,

connection to gas network • OR mid-scale LNG import terminal

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• Large-scale LNG import terminal could be connected to the natural gas transmission network

• Mid-scale terminal is planned to deliver LNG for new markets outside the gas network, marine and industrial Gasum is carrying out LNG import terminal projects in several locations:

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FINLAND

RUSSIA

ESTONIA

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LNG:n supply chain small scale

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LNG/CNG Filling station

LNG large scale terminal

LNG truck

LNG production

LNG Indutrial

LNG Marine

LNG feeder

LNG terminal

LNG fixed bunkering

LNG bunkering barge

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LNG market potential Market Development

1. Industrial oil user outside NG grid

2. Marine new builds on fixed routes

3. Industrial LPG user outside NG grid

4. Marine new builds cargo

5. Traffic use, LNG and CNG filling stations

6. Marine retrofits

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LNG market (TWh)

It´s time for gas !

Sail

Coal Oil

Gas

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